French BlaBlaCar buys its Russian competitor

BlaBlaCar group sold to the world’s largest service of finding fellow travelers BlaBlaCar its Russian service of carpooling BeepCar. This is stated on the company’s website.

“ Group and BlaBlaCar (world’s largest search for travel companions) announced partnership. As part of this cooperation, BlaBlaCar will acquire BeepCar, a Russian carpooling service launched by Group in 2017”, – stated in the press release.

“We are pleased to announce the launch of a long-term partnership with BlaBlaCar, during which we will integrate BeepCar into their system. Cooperation will allow us to focus on the development of our ecommerce initiatives, while giving users the opportunity to continue to use their favorite carpooling service”, – said the General Director of Group Boris Dobrodeyev.

According to the CEO of BlaBlaCar Nicolas Brusson, this acquisition will allow the company to “double the activity in Russia.”

The report states that BlaBlaCar will start to promote carpooling on the grounds of Group. Beepcar traffic from Autumn will be redirected to BlaBlaCar and will provide Group advertising revenue.

“ Group will continue to focus on the development of larger verticals: food delivery, cross – border trade, classifieds,” the company said.

BlaBlaCar entered the Russian market in 2014, becoming one of the largest carpooling services, i.e. search for travel companions for a joint trip. The total size of the service audience – 65 million users, and in Russia – 15 million.

Currently BlaBlaCar is considered the largest carpooling service in Russia. At the end of 2017, 2 million users were registered in BeepCar, and at the end of the second quarter of 2018, the application had more than 5 million installations in iOS and Android.

In early August, CEO of BlaBlaCar, Nicolas Brusson said that the company is in no hurry today to “monetize Russia.” “When working in any market, it is important to first gain a foothold, form a certain amount of users and achieve a good level of security. Then you can think about profit,” he explained.

With the beginning of 2018, the market of carpooling in Russia had seen “Yandex” launching the application “Yandex.Poputka”. While it works in Krasnoyarsk, Rostov-on-don and its region the program has gained more than 10 thousand app downloads in Google Play.

Assessment by Sberbank CIB Investment Research shows that by 2025, the taxi services, carpooling and car-sharing will gain 377 billion rubles as a result of substitution of public transport, and in the result of substitution of private transport – 474 billion. (The report does not specify proportions.)

Together with car-sharing and taxi, the target market for new transport services in 2017-2025 will increase by 2.5 times and will amount to 1.6 trillion RUB.

It is believed that carpooling will increasingly replace public transport. According to estimates by the investment Bank, “Yandex” can gain 70% of revenue from the replacement of public transport, because the company “will become the leader in the segment of carpooling”.

Realizing that the market size is not enough for every participant, the owners of carpooling services thought about consolidation since last year.

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